Abstract:
The study was designed to assess the external factors affecting the performance of Micro and
Small Enterprises (MSEs) in Bedele town. A sample of 297 operators or owners of the
enterprises engaged in five sectors was taken for the study using stratified random sampling
technique. The head of Bedele micro and small enterprises development agency was purposely
selected for the interview. From the distributed 297 questionnaires 269 were returned. The
data collected through questionnaire is analyzed using both descriptive and inferential
analysis (Pearson’s product moment correlation coefficient and Multiple Linear Regression
Model). Besides, the interview questions were analyzed using descriptive narrations. The
empirical finding elucidated that factors affect the performance of MSEs which include;
accessibility of external source of finance, accessibility of business development services and
marketing factors are significantly affect the performance of micro and small enterprises in
Bedele town. While, government policy and bureaucracy and infrastructure are found to be
insignificantly explaining the performance of MSEs. The finding further indicate that, the
existence of linear and positive significant, ranging from weak to strong relationship was
found between independent variables and dependent variable. Based on the findings
recommendations to stakeholders, to operators of MSEs and suggestions for further
researchers are forwarded.
